Sensex, Nifty tank as Middle East tensions, oil price worries spook markets

The S&P BSE Sensex lost 808.65 points to close at 81,688.45, while the NSE Nifty50 was down 200.25 points to end at 25,049.85.

Benchmark stock market indices closed in red after a volatile day on Friday amid the growing Middle East conflict.

The S&P BSE Sensex lost 808.65 points to close at 81,688.45, while the NSE Nifty50 was down 200.25 points to end at 25,049.85.

Raj Patel, CMO at MintCFD said that Indian markets crashed due to worries about geopolitical tensions regarding the Iran-Israel war, thereby stoking fears of a spike in crude oil prices.

"Investors should keep an eye on Crude oil prices, as a rise is negative for oil-importing countries like India. There is also a looming China factor, where the economic stimulus may result in sustained growth in Chinese stocks, prompting a potential outflow of funds from India. Indian Investors and retail traders should watch the emerging situation very closely and be updated on global events," he added.

Vinod Nair, Head of Research, Geojit Financial Services said that the bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on recovery strategy.

"Crude prices have moved up sharply but may be restricted due to an increase in production from OPEC+. The drag was across sectors led by realty, auto, and FMCG except IT stocks, which gained due to expected benefits from US rate cuts and defensive nature," he added

The pessimism on the market is expected to continue in the near term amidst rising crude prices and fund flows to cheaper markets like China.

Take a measured risk approach as the volatility may negatively impact the markets, but may also provide an opportunity to trade short-term volatility trends.